DOJ Watchdog Seeks Independent Probe Into FTX Collapse

December 2, 2022

The US Department Of Justice filed a motion in the Bankruptcy Court requesting the appointment of an independent examiner to look into FTX collapse and Chapter 11 bankruptcy.

"Like the bankruptcy cases of Lehman, Washington Mutual Bank, and New Century Financial before them, these cases also require the appointment of an independent examiner in to FTX collapse," regulators said.

In the motion, the Justice Department said the appointment of an independent examiner would be in the interests of FTX's creditors and other interested parties.

"The customers need a neutral party to investigate allegations of fraud, dishonesty, incompetence, misconduct, and mismanagement", the US crypto regulatory body said.

On November 11, 2022, FTX filed for Chapter 11 bankruptcy protection.

Since then, several legal battles have broken out among the many parties looking to recover assets from FTX.

These parties include the Bahamas and its Securities Commission, the U.S. Securities and Exchange Commission, the Department of Justice, and several U.S. state regulators.